How I Feel at the Grocery Store These Days

By Zoriana Zaitseva @ Shutterstock.com

Too much money chasing too few goods is how I feel at the grocery store these days. The money just isn’t going as far as it used to. You know the story, fewer potato chips in a bag that’s shrinking.

When I’m looking for some meat, I ask myself, “Where’s the beef?” Why do I feel like the lady in that classic Wendy’s commercial? Speaking of which, how is it that White House spokeswoman Jen Psaki places the blame for rising prices on meatpackers?

Then I read in The Wall Street Journal about millennials plunking down $625k for a “starter home.” What does that say about inflation? You tell me. Does it mean prices are coming down from here? I’m not in the prediction business, but prices are as much about emotion (we want our own yard, a quiet street, to start a family) as anything else. If you sell, it’s only “worth” whatever the next guy pays.

How you’ll deal with a downshift in prices or a price that’s a lot lower in a forced liquidity event is called risk management. It’s simply a monetary event skewing price “discovery.” You don’t want to be the one discovering it’s not what you thought it was. Buy for value, not for the chance to sell later at a higher price because you may discover that you can’t.

Back to the government. Is another disaster exactly what they want? Do they want you to need them for a bailout or rent-free housing? After every crash people become more dependent on government welfare. We’ve seen this play out three times already this century. Don’t believe it can’t happen again.

Action Line: Imagine stocks decline by a third, or you can’t sell your house at the “right” price when you need to. These are parts of the risks we face when there’s so much uncertainty in the markets. Your best way to survive is to know that no matter what happens to prices, you don’t need to sell. You invest in stocks for income, and you own your home debt-free to raise a family with the peace of mind you deserve. Take prices out of the mix, and you’ll sleep better at night. I promise you.